Click here to close now.


API Journal Authors: Elizabeth White, Jason Bloomberg, Pat Romanski, Janakiram MSV, Joe Pruitt

News Feed Item

Zacks Bull and Bear of the Day Highlights: Thoratec, J. C. Penney, Flextronics International, Google and Apple

CHICAGO, Dec. 14, 2012 /PRNewswire/ -- Zacks Equity Research highlights Thoratec Corp. (Nasdaq:THOR) as the Bull of the Day and J. C. Penney (NYSE:JCP) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Flextronics International Ltd. (Nasdaq:FLEX), Google (Nasdaq:GOOG) and Apple Inc. (Nasdaq:AAPL).


Full analysis of all these stocks is available at

Here is a synopsis of all five stocks:

Bull of the Day:

We maintain our recommendation for Thoratec Corp. (Nasdaq:THOR) at Outperform. Its earnings per share of $0.44 in the third quarter beat the Zacks Consensus Estimate. The company achieved 27% unit growth for HeartMate II in the third quarter.

Thoratec's competitor HeartWare has gotten approval, in November 2012, from the FDA for its Ventricular Assist System as a bridge to transplantation. However, there is no imminent competitive threat from HeartWare in the DT segment, as its product is not expected to be launched till 2015. We believe that the DT condition will account for the major part of growth in the Ventricular Assist Device (VAD) market.

Despite less visibility, Thoratec has expertise in product development. The company continues to do well in overseas markets despite economic turmoil in Europe. We maintain our recommendation on the stock with a price target of $44.00, based on a P/E of 27.5x our 2012 EPS estimate.

 Bear of the Day:

J. C. Penney (NYSE:JCP) posted a third-quarter 2012 loss of $0.93 per share that fared worse than the earnings of $0.18 in the year-ago quarter and the Zacks Consensus Estimate of loss of $0.08. The company has missed the Zacks Consensus Estimate in the last four quarters by an average of 328.2%. Total revenue also fell 26.6%, whereas comp sales slid 26.1%.

We observe that despite a well-diversified supplier base, the company has been struggling against other retail chains. Its dismal results dashed those hopes at least for the near term. Moreover, erratic consumer behavior and a sluggish economic recovery still remain matters of concern.

Currently, we maintain our Underperform recommendation on the stock. Our target price of $26.00 is based on a price-to-cash-flow multiple of 4.8X.

Latest Posts on the Zacks Analyst Blog:

Flextronics to Buy Motorola Assets

Electronic product contract manufacturer, Flextronics International Ltd. (Nasdaq:FLEX) recently announced an agreement with Motorola Mobility LLC to acquire the latter's manufacturing facility and equipment in Tianjin, China and related equipment in Jaguariuna, Brazil for an undisclosed amount. The deal is expected to be completed by the end of first half of calendar year 2013.

In May 2012, Google (Nasdaq:GOOG) acquired Motorola Mobility for approximately $12.5 billion. The current deal reflects Google's strategy of downsizing Motorola's existing operations in order to save cost. The deal will make Flextronics Motorola's biggest outsourcing partner.

Currently, Flextronics serves both Google and Apple Inc. (Nasdaq:AAPL). We believe that Flextronics is well positioned to benefit from the growing rivalry between these two companies over the long term.

Flextronics expects the deal to be accretive on both operating income and earnings per share basis for fiscal year 2014. Revenue potential is expected to be of several billions and operating margin remains within the target range for its High Velocity Business segment. The company expects to earn a return on invested capital ("ROIC") of 20% going forward.

Flextronics announced that the two facilities, along with equipment and assets are worth approximately $75.0 million and the company is not paying any premium for these items. Moreover, Flextronics will acquire a highly trained and skilled ready-to-deploy employee group, which will save it a lot of time and training money, in our view.

We believe that the deal will be significantly beneficial for Flextronics as it will help in expanding the company's manufacturing capacity in the low cost regions of China and Brazil. Notably, in August this year Nokia Siemens Network signed a contract with Flextronics to open an assembly line in Brazil.

Acquisitions have been an integral part of Flextronics' growth story. Although most of the acquisitions were that of start-ups and small companies, they helped Flextronics to expand its presence in the communications, medical, infrastructure and automotive sectors. We believe that the Motorola facility acquisition will further drive its growth prospects over the long term.

However, Google's intentions regarding the Motorola hardware operations are not very clear. The search giant has already announced its intentions of exiting the entry-level low-margin handset business and focusing on high-end smartphones, where Motorola used to have minimum presence.

We believe that this uncertainty related to Google's motive over Motorola's handset manufacturing business will be a significant headwind for Flextronics going forward. If Google suddenly decides to wind up the whole business, both the current facilities will become idle (currently they will only manufacture Motorola handsets), which will hurt Flextronics' top-line growth going forward.

Moreover, macro-economic concerns and weak end-market demand are the other major concerns in the near term.

We have an Underperform recommendation on Flextronics over the long term. Currently, Flextronics has a Zacks #4 Rank (Sell).

Get the full analysis of all these stocks by going to

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting

About Zacks is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment

Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at

Visit for information about the performance numbers displayed in this press release.

Follow us on Twitter:

Join us on Facebook:

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected] 

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data shows "less than 10 percent of IoT developers are making enough to support a reasonably sized team....
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new data-driven world, marketplaces reign supreme while interoperability, APIs and applications deliver un...
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Valley. The program, to be aired during the peak viewership season of the year, will have a major impac...
SYS-CON Events announced today that ProfitBricks, the provider of painless cloud infrastructure, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. ProfitBricks is the IaaS provider that offers a painless cloud experience for all IT users, with no learning curve. ProfitBricks boasts flexible cloud servers and networking, an integrated Data Center Designer tool for visual control over the cloud and the best price/performance value available. ProfitBricks was named one of the coolest Clo...
Organizations already struggle with the simple collection of data resulting from the proliferation of IoT, lacking the right infrastructure to manage it. They can't only rely on the cloud to collect and utilize this data because many applications still require dedicated infrastructure for security, redundancy, performance, etc. In his session at 17th Cloud Expo, Emil Sayegh, CEO of Codero Hosting, will discuss how in order to resolve the inherent issues, companies need to combine dedicated and cloud solutions through hybrid hosting – a sustainable solution for the data required to manage I...
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Bradley Holt, Developer Advocate at IBM Cloud Data Services, will demonstrate techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user experience, both offline and online. The focus of this talk will be on IBM Cloudant, Apa...
WebRTC is about the data channel as much as about video and audio conferencing. However, basically all commercial WebRTC applications have been built with a focus on audio and video. The handling of “data” has been limited to text chat and file download – all other data sharing seems to end with screensharing. What is holding back a more intensive use of peer-to-peer data? In her session at @ThingsExpo, Dr Silvia Pfeiffer, WebRTC Applications Team Lead at National ICT Australia, will look at different existing uses of peer-to-peer data sharing and how it can become useful in a live session to...
As a company adopts a DevOps approach to software development, what are key things that both the Dev and Ops side of the business must keep in mind to ensure effective continuous delivery? In his session at DevOps Summit, Mark Hydar, Head of DevOps, Ericsson TV Platforms, will share best practices and provide helpful tips for Ops teams to adopt an open line of communication with the development side of the house to ensure success between the two sides.
There are so many tools and techniques for data analytics that even for a data scientist the choices, possible systems, and even the types of data can be daunting. In his session at @ThingsExpo, Chris Harrold, Global CTO for Big Data Solutions for EMC Corporation, will show how to perform a simple, but meaningful analysis of social sentiment data using freely available tools that take only minutes to download and install. Participants will get the download information, scripts, and complete end-to-end walkthrough of the analysis from start to finish. Participants will also be given the pract...
SYS-CON Events announced today that IBM Cloud Data Services has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IBM Cloud Data Services offers a portfolio of integrated, best-of-breed cloud data services for developers focused on mobile computing and analytics use cases.
The enterprise is being consumerized, and the consumer is being enterprised. Moore's Law does not matter anymore, the future belongs to business virtualization powered by invisible service architecture, powered by hyperscale and hyperconvergence, and facilitated by vertical streaming and horizontal scaling and consolidation. Both buyers and sellers want instant results, and from paperwork to paperless to mindless is the ultimate goal for any seamless transaction. The sweetest sweet spot in innovation is automation. The most painful pain point for any business is the mismatch between supplies a...
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Nowadays, a large number of sensors and devices are connected to the network. Leading-edge IoT technologies integrate various types of sensor data to create a new value for several business decision scenarios. The transparent cloud is a model of a new IoT emergence service platform. Many service providers store and access various types of sensor data in order to create and find out new business values by integrating such data.
The broad selection of hardware, the rapid evolution of operating systems and the time-to-market for mobile apps has been so rapid that new challenges for developers and engineers arise every day. Security, testing, hosting, and other metrics have to be considered through the process. In his session at Big Data Expo, Walter Maguire, Chief Field Technologist, HP Big Data Group, at Hewlett-Packard, will discuss the challenges faced by developers and a composite Big Data applications builder, focusing on how to help solve the problems that developers are continuously battling.
Who are you? How do you introduce yourself? Do you use a name, or do you greet a friend by the last four digits of his social security number? Assuming you don’t, why are we content to associate our identity with 10 random digits assigned by our phone company? Identity is an issue that affects everyone, but as individuals we don’t spend a lot of time thinking about it. In his session at @ThingsExpo, Ben Klang, Founder & President of Mojo Lingo, will discuss the impact of technology on identity. Should we federate, or not? How should identity be secured? Who owns the identity? How is identity ...
Developing software for the Internet of Things (IoT) comes with its own set of challenges. Security, privacy, and unified standards are a few key issues. In addition, each IoT product is comprised of at least three separate application components: the software embedded in the device, the backend big-data service, and the mobile application for the end user's controls. Each component is developed by a different team, using different technologies and practices, and deployed to a different stack/target - this makes the integration of these separate pipelines and the coordination of software upd...
WebRTC converts the entire network into a ubiquitous communications cloud thereby connecting anytime, anywhere through any point. In his session at WebRTC Summit,, Mark Castleman, EIR at Bell Labs and Head of Future X Labs, will discuss how the transformational nature of communications is achieved through the democratizing force of WebRTC. WebRTC is doing for voice what HTML did for web content.
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, will introduce the technologies required for implementing these ideas and some early experiments performed in the Kurento open source software community in areas ...
WebRTC: together these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at WebRTC Summit, Cary Bran, VP of Innovation and New Ventures at Plantronics and PLT Labs, will provide an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it may enable, complement or entirely transform.